Fuel Cells Gain Ground as AI Data Centers Face U.S. Grid Delays
Fuel cells are emerging as an alternative power source for U.S. AI data centers facing lengthy grid-connection delays. Bloom Energy and FuelCell Energy are pursuing data center customers, including Oracle and Nebius, as demand for fast, reliable electricity grows.
Fuel-cell providers are targeting U.S. hyperscalers and data center developers that cannot obtain grid connections quickly enough to support new AI facilities. Rystad Energy expects fuel-cell investment for data centers to increase to about $30 billion by 2030, with roughly 40% of projected U.S. data center capacity potentially using dedicated on-site power.
Bloom Energy CEO KR Sridhar said the company delivered power to an Oracle site in Utah in less than two months and secured planning-board approvals for a Nebius project in New Jersey within three months of signing the contract. Oracle plans to procure up to 2.8 gigawatts of Bloom fuel-cell systems, while FuelCell Energy expects data centers and related business to account for as much as 85% of its business within two to three years.
The projects still require gas connections, permits, transformers and switchgear, and their deployment depends on competitive costs, fuel availability and site readiness. Fuel cells can reduce local emissions compared with conventional gas-fired generation, but they remain one of several competing on-site power technologies.